Venmo/Pay car loan with credit card?

[pinkandgrey]

Hey everybody. I've been playing with this idea for awhile now, but I'm not sure if it's feasible. Could one use a 3rd party app such as Venmo or something to put the remainder of a car on a credit card? Have any of you done it? My current car loan has about $8000 left on it and I have a card with an 18k limit, so my utilization would be a little high (all my other cards are well under 9% utilization) but other than that it would be great. I would own the car so I wouldn't have to pay the ridiculously high full-coverage insurance on it anymore. Of course I also considered interest rates before someone mentions THAT elephant in the room. I have a 0% card at the moment (the 18ker). 

So is this possible? Have you done it/have any experience with it? 

 TIA!

[CCrew]

Don't know about Venmo, but I know Plastique will do it. Only careful place you go should be to run a small payment through as a test to make sure they don't treat it as a cash advance. 

[digitek]

Just going to throw this out there...I just got a check for $15,500 for a car that got totaled in an accident that was not another drivers fault, but was almost nothing the driver could've done to not wreck the car.  First thing I thought was "oh **bleep** was I dumb and trying to save a few bucks when I setup the policy for this car?!?!?!"...thank goodness I was not and paid for full coverage.

Unless the car isn't worth much or you could afford to replace it easily, full coverage is probably worth it.  There are a million things that can happen that aren't technically your fault or "nothing you could do about it" scenarios.

The idea to use 0%BT to pay it off is a good one, should save you a few bucks on interest even if you decide to keep full coverage.

[Anonymous]

Until someone without insurance totals your car and you're still paying $8,000 on a heap of scrap metal. Not a good idea!

[pinkandgrey]

Thanks for the input, everybody! I will say, however, that my question isn't whether or not I should carry full insurance. Let me worry about that one. My question is whether or not I can/should use a 3rd party app to pay off the car on a CC. My credit union doesn't allow direct CC payments. 

[pinkandgrey]

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@CCrew wrote:

Don't know about Venmo, but I know Plastique will do it. Only careful place you go should be to run a small payment through as a test to make sure they don't treat it as a cash advance. 

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Thank you for answering the question and disregarding the insurance what-ifs LOL. Have you used Plastique for this type of scenario?

[CCrew]

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@pinkandgrey

Thank you for answering the question and disregarding the insurance what-ifs LOL. Have you used Plastique for this type of scenario?

I didn't use it, but I looked into it after a news article where some enterprising couple used it to buy a Tesla. I was actually looking at a scenario where I was going to pay off a car loan in order to get clear title so I could much easier sell a car on the market, then PIF the credit card with the proceeds. Same scenario where the loan was with Chase and they won't accept a CC as payment. What I was trying to do was get out of a higher interest car loan that was almost 3 years old. 

At the end of the day between the negative equity in the payoff, and the 2.9% Plastique was going to charge It was actually financially more feasible to trade the car against a car with a high rebate/low interest  loan given my credit is hugely better than 3 years ago. At the end of the day I rolled $4k worth of rebates *and* got a 3.74% loan which made the Plastique path "Plan B".  I know it's not the same scenario as you trying to get a lower insurance cost, but when you consider it at the end of the day it's all about how much $ is going out of budget to own the car. I'm older than dirt with a pristine driving record so insurance seems to be the same no matter what I buy. 

[pinkandgrey]

Ok, so thanks for all the advice/suggestions from everyone. I looked up Plastiq and apparently Amex can't be used for car payments. I was planning on using my BCE for it, so no go anyway. Oh well. My credit will thank me LOL 

[Anonymous]

Personally, I would caution against it. Unless your current Interest rate is so high that it makes a difference, by the time you add the fees etc. You'd likely not be ahead in anything. 

[Anonymous]

Last year I paid off my remaining car loan of amount somewhere around $7k using Bank of America Balance credit card (if I remember the name correctly). There was $0 balance transfer fee and I had 0% APR for 12 months which is still going on. I paid off my credit card in few months and then product changed it to cash rewards card since that card was useless. Overall, I didn't save much on interest (only $65) by paying off my car loan one year before its end date.